Why we all need to reclaim PPI

Hitting you when it hurts: why we all need to reclaim PPI

The recent publicity surrounding Payment Protection Insurance and the High Court ruling that means the banks are liable for billions of pounds worth of compensation, has highlighted a number of flaws with the ways banks operate and treat their customers.

Gone are the days when customers at banks were treated as customers; in today's sales driven banks, customers may be viewed as nothing more than sales targets, there to increase banking profits.

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In the heady days of the pre-recession era, when credit was plentiful and repayment rates relatively cheap, many of us were encouraged to take out loans and credit cards by banks. It was presented as an easy and affordable option, and millions bought into the credit card way of life. Some were aware of the pitfalls of getting into debt, so when they took out their credit card or loan they opted for some additional financial protection, too. This was typically in the form of payment protection insurance.

PPI, sometimes known as loan protection insurance, was designed to offer customers stability and peace of mind should they lose their job and have difficulty meeting monthly repayments on their loan or credit card debt. By paying a bit extra on your repayments each month you could rest easy that, in the worst case scenario, you would be able to meet your repayments. Except that isn't what happened to thousands of PPI customers.

There have been more than 1.5 million complaints made regarding payment protection insurance since the Financial Services Authority (FSA) took over regulation of the financial services industry in 2005. There have been many problems with the way in which payment protection insurance was often presented to and sold to customers; something that is now having wide-reaching repercussions across the banking industry. People are rightly questioning the benefits of a policy that exists to provide back-up in the event of somebody's personal circumstances changing suddenly.

Due to the way that some banks sold the policies – and the fact that some PPI policies were sold to groups such as the self-employed, students and pensioners, who could not benefit from the insurance, many payment protection insurance claims were rejected.

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Not only does this mean that thousands of customers may have wasted millions, if not billions, of pounds on a worthless piece of insurance, it also meant that many people were left having to find the money to make their credit card or loan repayments each month, at a time when their finances were vulnerable. The mis-selling scandal of PPI is particularly upsetting because it potentially could have left thousands of people saddled with debts in unemployment that they thought they had made plans to protect themselves against.

It is for this reason that all victims of mis-selling are urged to make a claim against the banks, so that it can act as a warning against a financial scandal like this happening again. So if you took out a loan, credit card or even a mortgage in the last ten years, check to see if you are liable to make a PPI claim.

Keep reading to find out what to do next

This is what you should do next:

First: Check your loan or credit card statements and documentation and try to work out if you are actually making regular payments for PPI. If you are, make a note of how much you are paying each month, and then, if you can, make a rough estimate of how long you have been paying it for. In this way you should be able to work out roughly how much money you could claim back – with interest – from the banks.

When applying for PPI refunds there are two basic options open to you. If you have the time and the inclination you could choose to investigate the subject via the bank who you suspect may have sold you the policy unnecessarily in the first place. This process involves detailed correspondence between yourself and your bank – outlining details via letter and issuing responses.

Alternatively, you could choose to side with an independent company that has no ties or affiliations with any financial institutions and has a record of dealing successfully with PPI claims. For example, The PPI Claim Company knows the subject thoroughly and is happy to discuss the transparency of its process with customers at all times.

Whichever way to choose to pursue your PPI claim, one thing is certain - you should not be perturbed. Research your own circumstances, find the right documentation and pursue your individual compensation claim for payment protection insurance now. If your bank mis-sold you a policy start claiming your money back today.

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